Lindsay Tanner, the Shadow Minister for Telecommunications, claimed in a statement issued today that departmental modelling showed the Telstra price caps that came into effect on July 1 would allow Telstra to secure an extra AU$170 million per year.
The row began last month when the Opposition indicated it would reject the price controls in the Senate. The Minister for Telecommunications, Richard Alston, responded that if the legislation was disallowed there would be no legislation covering Telstra pricing. Alston's remarks prompted Tanner to level charges of bullying against the Government.
The Opposition claims that under Telstra's August price rises most line rental charges increased, while local call costs remained the same. Tanner claims this refutes government claims the legislation promotes re-balancing, a situation where increases in the cost of line rentals are offset by falling call costs, leaving consumers no worse off.
However, Rod Bruem, public affairs manager of Telstra's legal and regulatory department, told ZDNet Australia he was disappointed that Tanner was "so unfamiliar with the legislation that he's trying to have it disallowed". Bruem claims rebalancing is necessary and used across the world in the process of dismantling monopolies, and said he was unsure where Tanner got the figure of AU$170 million from.
"We have to lower our prices by more that what the line rental goes up," said Bruem. "So I don't know how you could attribute greater profit to the legislation." He cited in support of his argument weekend reports that the Australian Council of Social Service (ACOSS) has criticised the Opposition's move to disallow the new pricing regime, claiming it is short-sighted.
On Tuesday, Telstra made a submission to the Estens Inquiry claiming significant gains in service levels to rural and regional Australia. Labor mocked the submission, claiming the inquiry has been inundated with submissions from Australians living in regional and rural areas complaining of the service received from Telstra.
Senator Alston had not responded to requests for comment at the time of publication.
Why should the city consumers have to pay for outback services. Telstra makes enough money just on the phone line rental, to install cable internet to every home.
So why do we have to suffer, because the big head don't want to put out some money to help the out back. Instead they make us pay for it by increasing prices..
I say sell telstra off to the highest bidder, get the fedral government out of our communication indusrty, they are doing more harm then any good at all.
It high time Autstralia had some real competition in the industry,,, Telstra sucks when it comes to money.
The $30.00 phone line rental is bullshit, how about putting some money back into the industry telstra without jacking up the prices, then and only then we might think you are doing something for us, instead of us doing something for you.
Your crap fee's and charges are becoming a high finance racket, soon you will have all of us not using your phones, then where will your money be.
I hate crapping on about telstra scums, I'm gonna play UT2K3 which I d/led.